Operational Excellence through Leadership and Compliance

Maritime Compliance Report

Welcome. Staying in compliance takes dedication, diligence and strong leadership skills to stay on top of all the requirements which seem to keep coming at a rapid pace. With this blog I hope to provide visitors with content that will help them in their daily work of staying in compliance. I hope you find it a resource worthy of your time and I look forward to your feedback, questions, comments and concerns. Thanks for stopping by. To avoid missing critical updates, don’t forget to sign up by clicking the white envelope in the blue toolbar below.

Coast Guard Makes a Course Correction on FSPs

 Apparently, based upon a recently published Coast Guard policy decision, lots of facilities will be able to throw their facility security plans (FSPs) in the trash. The policy document "Policy Advisory Council #02-11" lists 35 regulated cargos which are now exempt from maritime security regulations based upon their low risk. Most of the facilities which will be able to dispose of their FSPs are facilities that deal exclusively with barges. In general, if any of these facilities receive ships they will still be required to have an FSP due to the ships they receive, as always. However, the document is still useful for those ship-receiving facilities in deciding the appropriate level of security for the "cargo awaiting loading on ships" since the policy document clearly states these products, "have little threat of contributing to a TSI." Some questions for those ship-receiving facilities to ask about their FSP might be, "Do the cargo areas then still need to be restricted areas, or part of the secure area?"


 


But even more interesting is the second table of products listed in the policy document, labeled "Commodities that are not now and have never been regulated." The 11 products listed in this table include aggregate, gravel, gypsum, salt, etc. At first I didn't understand why the Coast Guard would find it necessary to publish a list of products which have never been regulated, although I had my suspicions.  Well, my suspicions were confirmed. Headquarters found it necessary to list those products because some facilities handling those products, but not receiving ships, had been mistakenly required to implement FSPs when those facilities had never fallen into the applicability of the maritime security regulations. Imagine the money spent by companies over the past seven years on plans, fences, cameras, training and TWIC cards, not to mention the stress and time wasted complying with a regulation which never applied. This is the unfortunate consequence of subscribing to the mentality of "just do whatever they say so they go away and leave us alone." 


Coast Guard headquarters' intent is to have consistent application and enforcement, and they continue to encourage industry to appeal if they feel the regulations are being applied or enforced incorrectly. I have submitted 37 FSPs to the Coast Guard, each one representing the "optimum level of compliance" for my client's facility. Few have been approved without a healthy debate up the chain of command on matters such as the TSI threats, the facility footprint, what needs to be a restricted area, what needs to be the secure area, etc. Four of these debates evolved into successful appeals, saving my clients hundreds and thousands of dollars.  Does your FSP represent the optimum level of compliance?

http://www.maritimecomplianceinternational.com/images/stories/articles/CG.PAC.02-11.exempt.commodities.pdf
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Towing Vessel Inspections NPRM Published

The Notice of Proposed Rule making on Towing Vessel Inspections has been published in the Federal Register.  Here is a link: http://edocket.access.gpo.gov/2011/pdf/2011-18989.pdf

More on this to follow, stay tuned.... 

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Towing Vessel Inspection Regulations Cleared by OMB

The towing vessel inspection regulations known as Subchapter M have been cleared by the Office of Management and Budget (OMB). The Notice of Proposed Rule Making (NPRM) is expected to be published this month. These regulations include a safety management system (SMS) for the towing industry. Some companies have had an SMS for many years and may be less concerned than those who have not yet adopted an SMS.  However, there may be cause for concern even for those who have had an SMS for quite some time due to differing expectations on implementation.

The government RIN Data sheet 1625-AB06 for subchapter M contains a "statement of need" which is very instructive.  It states, "The intent of the proposed rule is to promote safer work practices and reduce casualties on towing vessels by ensuring that towing vessels adhere to prescribed safety standards and safety management systems." Some companies may have very large SMS manuals which make it difficult for crews to use and as a result, few of the written policies and procedures are actually followed by captains and crews. It is very difficult to implement large "pie-in-the-sky" type of SMS manuals. When discussing this once with a towboat company manager, his response was that he was required to have policies and procedures in his SMS, but nowhere did anyone say they actually had to follow them..? While few are willing to be this candid about it, I'm sure that company is not the only one with that perception about their SMS.  Full implementation of the SMS will be the real challenge for all with Subchapter M. Stay tuned... 

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USCG / EPA Collaborate on Enforcement

The U.S. Coast Guard and the U.S. Environmental Protection Agency have recently signed a memorandum of understanding (MOU) regarding the enforcement of MARPOL Annex VI.  MARPOL Annex VI deals with air pollution from vessels.  I used the word "vessels" because this Annex has wide applicability and does not only apply to ships or vessels on an international voyage. In fact in the U.S. Coast Guard had previously published enforcement guidance specifically for enforcing this Annex on U.S. vessel of any gross tons, not on an international voyage. This recent MOU explains each agency's role in the enforcement of the Annex. It comes in the wake of the MOU earlier this year between the same two agencies regarding the enforcement of the Vessel General Permit (VGP).Vessel operators should pay close attention to these two requirements.  These agencies have differing approaches to enforcement and assumptions should not be made that what may have been accepted in the past will be accepted in the future.I recently spoke with the EPA VGP program manager who explained that the VGP is currently being actively enforced.  His assessment was that vessels that have adopted a compliance management system seem to be the most successful during enforcement boardings.  He further explained that the more specific answers received from captains the better.  His expectation is that if the inspection required by the permit is to look for sheen, foaming, dust, chemicals, abnormal discoloration, then that should be what the captain explains they look for, and not a generic answer that an inspection is done.Please consider joining us for an important workshop in New Orleans on July 29th where we will work on these two MOUs as well has some successful compliance management strategies. 

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Increased Scrutiny of SMS Implementation by U.S. Coast Guard

 When it comes to what constitutes full implementation of a safety management system such as the International Safety Management (ISM) Code, there seems to be a disconnect between what different stakeholders believe to be adequate. Different flag states, recognized organizations, class societies, and port state control authorities enforce the code to their own standards, not to mention each individual auditor's experience and subjective opinions.  The real disparity becomes painfully clear during times of major accident investigations and litigation, when everything is put under a microscope and the level of implementation that was considered "satisfactory" at the last audit can now constitute alleged negligence.



A company may have an acceptable safety management system and a satisfactory level of implementation, that is, until there is a serious casualty.  Once there is a serious casualty, the implication can be that whatever was being done before the accident was obviously inadequate, regardless of how many enforcement officials and auditors had blessed the program previously.  This is not what the ISM was intended to be, but it is unarguably what it has evolved into.  Nowhere is this more apparent than in the U.S. Coast Guard's report of investigation on the Deepwater Horizon disaster in the Gulf of Mexico.  The report finds fault with all stakeholders and pulls no punches. 

There must be clear and consistent expectations if ISM is going to be implemented as designed.  It seems the U.S. Coast Guard may now be thinking in a similar fashion. In the Deepwater Horizon report the recommendations include an investigation to see if a change to the current inspection and enforcement methods is required to increase compliance with the ISM code. Increased scrutiny of adherence to policies and procedures may be on the horizon. Vessel operators, including towing vessel operators in the U.S. who will soon be required by regulation to implement a safety management system, should start now making sure that their policies and procedures are actually being followed.

Say what you do, do what you say, and be able to prove it!
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RCP v. Subchapter M

The proposed rule containing regulations for the inspection of towing vessels, known as Subchapter M, is due to be published in a few months.  It is expected that these regulations will include a towing vessel safety management systems. Many towing vessel companies currently have a safety management system (SMS) in place known as the American Waterways Operators (AWO) Responsible Carrier Program (RCP).  Having been both a U.S. Coast Guard marine inspector and an AWO RCP auditor, I have noticed a different expectation regarding the level of implementation required between inspected vessel's SMS and RCP. I suspect that some RCP companies might have a difficult time with Subchapter M enforcement if they don't step up the level of implementation.


 


An interesting marine casualty report has been published by the Coast Guard regarding the unfortunate death of a U.S. merchant mariner. I recommend anyone involved in an SMS click on the link below, and/or if the link times out: go to Homeport, Investigations, & scroll down and open "S/R Wilmington Personnel Casualty," and take note of the emphasis placed on the SMS in this accident report, and how the Coast Guard intends to step up SMS enforcement.

http://homeport.uscg.mil/mycg/portal/ep/home.do?tabId=0&BV_SessionID=@@@@1323623537.1305732674@@@@&BV_EngineID=cccfad 

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New Safety Management System Workbook Available

A common practice throughout the maritime industry, despite elaborate safety management systems (SMS) which have been put in place, is to simply rely on the credentials and experience of mariners to operate safely. But the expectation with Safety Management Systems (SMS) is that written policies and procedures are to be followed by employees, both ashore and afloat.   Just ask anyone who has been involved in a serious accident investigation, or litigation. 

The hard truth is, best way to learn the company's policies and procedures is to "hit the books" and actually look up the information and apply it to real-life situations.  The best way to ensure this is done is to provide a tool to shipboard and shore-side employees which will help them do the work.

 


We have recently published an SMS workbook, based upon a qualification process used in the U.S. Coast Guard.  The workbook contains 90 different scenarios, each of which must be researched by the trainee in the company's own SMS. Space is provided to write down, not only the answer, but the section, page and paragraph number where the answer is found.  The workbook covers just about any scenario intended to be covered by any maritime SMS.  It can be issued to each individual employee as a personal qualification guide, or used during group training exercises.

Anyone who completes this workbook will be fully familiar with the company's SMS and will fare much better during inspections, audits, investigations, administrative hearings and trials. It can also serve as a required "management review" as it will bring to light any inadequacies in the SMS which require revision. Finally, auditors will find this workbook an excellent tool to determine if crews know the company policies and procedures, or if the issue is even addressed in the SMS.

Many companies have ordered these workbooks for their entire fleets and have found them to be extremely beneficial. To order the Safety Management System Workbook simply click here. You can pay by credit card through the website, or simply place an order and request an invoice. 

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What's the best way to get captains and crews to learn company policies and procedures?

These days there are many policies and procedures for crews to follow. As we have discussed in the past, many policies and procedures may be unreasonable or unrealistic, but once they have been customized and refined, what's the best way to get captains and crews to learn and follow them? Unfortunately, the answer is to "crack the books" which not too many people enjoy.  This is a true leadership challenge, but with the right skills and tools it can be done.

Please join us in New Orleans on April 29th for an important seminar on the proper implemenation of safety management systems.  Please follow the link below for further details:

https://marcomint.com/index.php?option=com_content&view=article&id=24&Itemid=16 

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USCG to “Evaluate Compliance” of EPA VGP March 11, 2011

Beginning March 11, 2011 during vessel boardings and inspections, the U.S. Coast Guard will begin evaluating compliance with the U.S. Environmental Protection Agency (EPA) Vessel General Permit (VGP).  A Memorandum of Understanding (MOU) was recently signed between the two agencies, and a USCG policy letter was published, requiring Coast Guard inspectors to use a job aid to evaluate the level of compliance on a particular vessel, document any discrepancies, and pass them along to the EPA.  The EPA retains enforcement authority and will take enforcement action based upon the information gathered by the USCG.


From the vessel operator's standpoint, there are a few aspects of this approach which may be problematic:

Many Coast Guard inspectors may not have received training on the VGP and so their approach and conclusions may vary significantly.  Vessel operators are accustomed to getting 30 days to correct a problem.  With this approach, inspectors are required to document all discrepancies and pass them along to the EPA for action regardless of whether the vessel has corrected the issue "on the spot" or not. Many companies may be trying to manage this VGP from the office.  However, the evaluation of compliance will be conducted on board by asking captains and crews pointed questions.

The only defense is to be in full compliance and have everyone properly trained.

USCG/EPA MOU:
http://epa.gov/compliance/resources/agreements/cwa/mou-coastguard-vesselpermitrequirements.pdf
CG Policy Letter:

 http://homeport.uscg.mil/cgi-bin/st/portal/uscg_docs/MyCG/Editorial/20110211/543 Policy ltr 11-01 VGP with enclosure.pdf?id=ee9784ac8e8fecf217d43d6fa6662f42f8c7d2ba 

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EPA VGP Compliance – Do You Have All the Facts?

10Each vessel owner/operator I ask about EPA VGP compliance gives me a different response:  "Oh yeah, I heard about that…We've got it covered we just log how much graywater we discharge and try not to wash any oil over the side…I asked the Coast Guard and they don't know anything about it…Is that for real..?" 

This year I was selected to do a session on EPA VGP compliance at the International WorkBoat Show Professional Series being held in New Orleans from December 1-3.  In preparation for my presentation, I just concluded a meeting in Houston with EPA officials who are responsible for the EPA VGP in EPA Region 6.


Participating in the meeting were the person in charge of VGP enforcement for Region 6, the EPA attorney responsible for VGP issues, and the individual responsible for permitting. The purpose of the meeting was to make sure I had all the facts from the horse's mouth when it comes to my presentation, and to be able to answer the tough questions.  Some clients had also provided me with their nagging questions, and these EPA officials were very forthright in their answers.  I found their willingness to discuss the issues candidly quite refreshing and I am truly grateful for their taking the time to meet with me.

My approach to compliance has always been to prepare for the worst and hope for the best.  This comes from my experience both in and out of the Coast Guard, seeing frustrated industry people whose compliance efforts amount to doing what everyone else was doing, or doing whatever the last government inspector said was OK.  This can only result in problems or penalties.  Companies must be in compliance with all aspects of written regulations and policies to ensure compliance, because a new inspector can always show up to enforce what he knows about.  But sometimes when a worst case scenario approach is compared to actual enforcement levels, it can appear to be a "boy who cried wolf" scenario.  That is why I wanted to make my presentation to the EPA officials first, for a reality check.  I wanted to know if my compliance management ideas were "over the top" or not.  Not only did they not think my approach was "over the top" they added many interesting comments.  Here are a few of the highlights:


The EPA VGP is currently being enforced.

Anyone who has knowledge of the requirements of the EPA VGP and deliberately ignores them will be referred to the criminal division.
The EPA VGP was written to be general, but the response in the form of BMPs, etc. must be specific processes tailored to your specific vessel and operation.

The best management practices (BMPs) required are the industry BMPs, not what youthink are BMPs. You could be fined for not following the industry best practices regarding any particular discharge. Follow the permit closely on BMPs and you won't be far off.

Documentation is very important when it comes to enforcement.

Anyone who certifies that inspections and monitoring required by the permit have been done, and it is determined that the inspections and monitoring in fact have not been done, those certifying individuals who signed the log or report will be referred to the criminal division.


I hope these comments make you confident and not worried, but in either case, consider attending the WorkBoat Show Professional Series session to hear the rest of the information and get the answers to your questions.  It should be noted that the comments above are paraphrased and not direct quotes and that the EPA does not endorse me, my company or any of our products. They simply listened and provided factual feedback. See you at the show. 

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